Germany Distributed Solar Power Generation Market Size

Germany Distributed Solar Power Generation Market Analysis

The distributed solar power generation market in Germany is expected to witness a CAGR of more than 2.5% during the forecast period. The COVID-19 pandemic had a negligible effect on the country's solar energy market, as they witnessed an upsurge in distributed solar PV capacity addition in 2020, even after a slowed industrial activity during the lockdown. For instance, in May 2020, as per the federal networking agency Bundesnetzagentur, the country has added 291 MW of distributed solar PV additions. Factors such as increasing energy demand clubbed with low operating costs, and the presence of top-notch renewable energy companies in the country will drive the distributed solar power generation market during the forecast period. However, the market growth is hampered by the high initial cost and unfavorable climate, as Germany is not a very sun-drenched country.

• The increasing demand for energy and clean electricity will drive the market's growth during the forecast period.
• The new German government has blueprints to phase-out nuclear and coal power from the electricity mix forever by 2030. Out of the six remaining atomic reactors, three are already shut down in 2021, and one will become dysfunctional by 2022. Coal-fired power production also decreased in the last decade. The new government still has plans to completely do away with coal power production to decarbonize all the energy applications. The measures place a tremendous opportunity for renewables and distributed solar power generation market.
• The government policies to promote renewable power generation is expected to propel the market growth during the forecast period.